SCHOOL OF ARCHITECTURE, BUILDING AND

DESIGN
FOUNDATION IN NATURAL AND BUILT
ENVIRONMENT
FEBRUARY 2014 / SEMESTER 2
NAME OF STUDENTS: DARREN LOONG CHI YOONG (0318029)
TAN ZHAO MING (0318724)
HOOI ZHAO HONG (0318564)
TEH QING DA (0318590)

MODULE: ENGLISH 2

LECTURER: MS. CASSANDRA WIJESURIA

ASSIGNMENT TITLE: A COMPARITIVE ANALYSIS OF 2

BUSINESSES OF SIMILAR INDUSTRY IN DIFFERENT
GEOGRAPHICAL LOCATIONS (HAIR SALON)

WORD COUNT: 3892 words

SUBMISSION DATE: 1ST DECEMBER 2014

CONTENTS
Key Summary ................................................................................ 3

Brief Bios ..................................................................................... 4 - 5

Comparative Analysis of the Business Competitive Traits ........ 6 - 10

Recommendation ...................................................................... 11 - 14

Appendices ............................................................................... 15 - 18

References ................................................................................. 19

KEY SUMMARY
In this report, we have researched about two hair salon business industry in two different
locations, one in Klang Valley and another in Seremban. In a group of four, we interviewed
the owners of the two hair salon. The one located in Seremban is called 'Royce Hair Salon',
tucked in the middle of the shoplots along Oakland Commercial Centre. The hair salon in
Klang Valley, which is named 'ReStyle' is located in Syopz Mall, the commercial building of
Taylor's University Lakeside Campus. We have analyzed and compared both of the business
in terms of the bios of the businesses, comparative analysis of the business competitive traits
and the recommendations for the businesses.

BRIEF BIO OF THE BUSINESSES

1. ROYCE HAIR SALON, SEREMBAN.
Royce Hair Salon is located specifically in Jalan Haruan of the Oakland Commercial Centre
in the new town of Seremban, which is called Seremban 2. Royce Hair Salon is a sole trader
business, which means they only have one owner and only one branch. Just like any other
hair salons, Royce Hair Salon provides the services that a normal hair salon would offer,
such as haircut, hairwash, hair treatment, hair coloring and hair highlighting. Besides just
services, they also sell hair care products, namely hair wax, hair gel, hairsprays, serums and
much more. As Royce Hair Salon is located in a quiet row of shoplots of the Oakland
Commercial Centre, there are not many customers that come in daily to get their hair done.
According to the owner, there are only 14 customers that come in daily on average, with a
minimum of only 8 customers that come in. Most of the customers that come into the salon
are regular customers. Royce Hair Salon opens daily from 10am to 7pm. An average haircut
for both male and female would cost RM 20 but there would be additional charges apply for
hair treatment and hair length, especially for female customers.
The hair salon was founded in 2012 by Royce, who is an Indian orphan rose by a Chinese
family. Although he is an Indian, Royce doesn't speak English. He mainly speaks Mandarin
and sometimes Cantonese. Royce's dream is to become a professional hairstylist and to start
up a succesful hair salon, which was his motive in starting up this business. Up to today,
there are only two employees working in the hair salon, which includes Royce. Royce is the
only person that attends to customers and does the customers' hair, whereas the other
employee only does shampooing and blowdrying the hair. Royce Hair Salon has no recent
developments so far as it is a fairly new hair salon and the owner has no intentions in
bringing the business in fame, as his only intention is to provide hairstyling services to the
residents of Seremban.

2. RESTYLE HAIR SALON, KLANG VALLEY

ReStyle Hair Salon is located in Syopz Mall, which is the commercial building of Taylor's
University Lakeside Campus. ReStyle Hair Salon has three other branches, which are located
in Sunway Pyramid, 1 Mont'Kiara and Tesco Mutiara Damansara respectively. ReStyle Hair
Salon belongs to the A Cut Above group, one of Malaysia's award-winning hair salons. The
founder of the A Cut Above group is Winnie Loo. Each A Cut Above group hair salons,
which include ReStyle Hair Salon has its own manager, who is also a hairstylist of the hair
salon. ReStyle Hair Salon has only two employees, which includes the manager. Both of the
employees are well trained from the A Cut Above Academy and can provide the service to
the customers. The services offered by ReStyle Hair Salon is just like any other hair salon,
which are dry cut, wash & cut, wash & blowdry, hair treatment, hair coloring and hair
perming. ReStyle Hair Salon also offers different packages, which are priced lower than
buying the service separately.
ReStyle Hair Salon opened in 2009, the year when Taylor's University Lakeside Campus
opened its doors for students to further their studies. The founder, Winnie Loo wanted to
target students to buy the hair salon services and also for the convenience of the residents
who stay in the hostel, which is why she decided to open another ReStyle Hair Salon branch
in Syopz Mall. This branch is the most recent ReStyle Hair Salon branch, the first located in
1 Mont'Kiara. Since then, ReStyle Hair Salon has offered most of its services to students of
Taylor's University and residents who stays in uResidence and ruemz. On average, there are
15 customers that walk in daily to do their hair, majority of the customers are students.
Since ReStyle Hair Salon in Syopz Mall is considered as a new branch, they have no recent
developments to date. Even the other branches have no recent developments but the parent
company; A Cut Above has won various awards since its establishment in 1979.
YouTube Link For This Section:
https://www.youtube.com/watch?v=kd9q36SmdEU&feature=youtu.be

COMPARITIVE ANALYSIS OF THE BUSINESS

COMPETITIVE TRAITS
Item

Royce Hair Salon

Number of Competitors

There are total of 10

competitors according to the
owner. The three main
competitors are Impress Hair
Salon, Kenji Hair Salon and
Domnik Hair Salon.

The three main competitors

of ReStyle Hair Salon are
Spazio Hair Studio, Hair
Fonts and APT Hair Salon.

1. Impress Hair Salon

- Impress Hair Salon is
located in Kemayan Square,
which is radius of shoplots
similar to where Royce Hair
Salon is located. It was
established much earlier than
Royce Hair Salon. For this
reason, there are more
customers that visit Impress
Hair Salon compared to
Royce Hair Salon.

1. Spazio Hair Salon

- Spazio Hair Salon is located
in a prominent spot within the
SS15 shop lots. The hair
salon have been in business
for a few years, garnering lots
of loyal customers that are
very much satisfied with what
they have to offer. Since it is
located in a very busy area, so
there will have alot of walk in
customers.

2. Kenji Hair Salon

- Located in a busy
commercial centre called Biz
Avenue in Seremban 2, Kenji
Hair Salon is quite a
reputable hair salon in
Seremban because of its
location. They also offer
promotion of their services,
which can be bought via
Groupon.

2. Hair Fonts
- Hair Fonts is one of the few
hair salons in Sunway
Pyramid, where another
branch of ReStyle is located.
Groupon has many deals with
Hair Fonts and customers can
purchase the offer at a
cheaper price for the same
service in Hair Fonts.

Brief Bio of Competitors

ReStyle Hair Salon

3. Domnik Hair Salon

- Domnik Hair Salon is
located inside of Terminal
One Shopping Centre. It is
one of the few hair salons in
the mall. It offers quick
haircut for shoppers and also
for the convenience of them.

3. APT Hair Salon

- APT, which is the
abbrevation of 'A Profesional
Team', is a hair salon that
consists of well-trained
hairstylist. It is also located in
Sunway Pyramid, where there
is another branch of ReStyle
Hair Salon. They don't just
provide hairstyling services
but they also provide
professional hairstyling
courses.

1. Pricing
Strategies to compete with
competitors

- Royce Hair Salon has a very

cheap pricing. As mentioned
by the owner, it only costs
RM 20 for a standard haircut
with hairwash for male and
female.

- ReStyle Hair Salon has a

relatively affordable pricing.
They also have packages for
customers to choose and buy
their service cheaper than
buying the service separately.

2. Service & Product Variety

- Royce Hair Salon offers a
standard service that every
salon has.
- They also have various hair
care products such as
shampoo, hair wax, hair gel,
conditioners that are
displayed for sale.

- ReStyle Hair Salon also

offers a professional standard
hair salon service.
- They have packages that are
at a cheaper price compared
to buying a service
separately.
- They have also a special
treatment, which is called
Brazilian Keratin
Treatment, that the
competitors do not provide.
- ReStyle Hair Salon do not
just provide hair care service,
but they also provide beauty
services, such as manicure
and pedicure, as well as
make-up service.

3. Quality of Service
- Royce Hair Salon has
excellent service quality. The
hairstylist, Royce is a very
friendly person towards all
his customers. While
providing the hairstyling
service, he would
communicate with the
customers and not just keep
quiet while doing their hair.
Royce is also an experienced
and professional hairstylist.

- ReStyle Hair Salon has very

well trained hairstylist that
are graduates from the A Cut
Above Academy. For this
reason, the hairstylists there
can provide a professional
haircut and hair treatment for
both male and female.
Besides that, the hairstylists
there are friendly and they
frequently provide advices for
customers on hair
maintenance.

4. Location
- Royce Hair Salon is the
only hair salon located in
Oakland Commercial Centre,
with its competitors located
outside of the commercial
centre but in a radius of 510km from the salon. It is
easy for customers to find the
hair salon. Moreover,
Oakland Commercial Centre
is located nearby a residential
area, which is why most of
Royce's customers who are
also his regular customers
come from that area.

- ReStyle Hair Salon is the

only hair salon located inside
of Syopz Mall. For this
reason, there is no direct
competition. Their target
market is the students of
Taylor's University and the
residents of the hostel, which
makes their location very
convenient for students and
residents.

5. Brand Name Selection

Royce Hair Salon has a

distinctive name because it is
named after the owner. Loyal
customers can relate quickly
in the first glance on the
signboard that it is their
regular hair salon.

ReStyle Hair Salon is a wellestablished hair salon despite

having 4 branches in total.
The word "ReStyle"
automatically forms an
impression towards
customers that it is a hair
salon. Regular customers
would also know that the
parent company of ReStyle
Hair Salon is an awardwinning hair salon, which is
A Cut Above.

Obstacles faced by new

businesses

One of the obstacles faced by new businesses that wish to

enter the hair salon industry is starting capital. Owners that
are planning to start a hair salon business have to contribute a
large sum of money in order to purchase the neccessities to
start up the business, such as salon chairs, mirrors, shampoo
sink and accessories. Besides that, the renovation cost for the
hair salon is also very high. According to Royce, the owner
of Royce Hair Salon, he mentioned that he needed to put in
approximately RM 50000 to start up this business. In
addition, there are so many other hair salons around
Seremban and Klang Valley respectively, that is why new
owners of the business will face a lot of competition when
they start their business. Many people are also regular
customers for their current hair salon that is why it is very
hard to obtain loyal customers when they first start their
business. These problems can be overcomed with patience
and promotion of their hair salon. The owner and the
hairstylists must put on an excellent first impression towards
all the customers that walk into the hair salon in order to gain
the loyalty of the customers.

Nature of Markets

Both hair salons are in a perfectly competitive market. This is

because both of the hair salons provide standardized services,
which are mainly haircut and hair treatment. The hair salons
also have no pricing power, which means that their pricing
for their services is more or less the same. If one hair salon
raises their price or if they price their service too high,
customers will get their hair treatment from the hair salon that
has a cheaper price for the same standard of service provided.

COMPETITIVE ANALYSIS SUMMARY TABLE

Competitive Traits

Royce Hair Salon

(Seremban-Based)

ReStyle Hair Salon (Klang

Valley-Based)

10, according to the owner.

8, according to research.

Weak. Since Royce Hair

Salon is the only hair salon
located in Oakland
Commercial Centre,
Seremban, many other hair
salons can start up the same
business freely.

Strong. ReStyle Hair Salon is

dominant in Syopz Mall and
the main reason that the hair
salon is started up in there is
to cater convenience of the
students and the residents of
the hostel.

Standardized.

Standardized.

Price taker. The business is

in a perfectly competition
market.

Price taker. The business is in

a perfectly competition
market.

5. Other Characteristics

Mutual dependence.

- Provides make-up services.

- Provides manicure and
pedicure services.
- Mutual dependence

6. Verdict

Perfect competition.

Perfect competition.

1. Number of
Competitors (in ranges
e.g. 2 to 10, 10 to 50, 50
to 150, etc.)
2. Barrier to Entry

3. Differentiated or
Standardized Products
4. Pricing Power

CONCLUSION
Based on our analysis of both businesses, the business that is more commercially successful
is ReStyle Hair Salon. This is because ReStyle Hair Salon has been established earlier than
Royce Hair Salon. Thus, ReStyle Hair Salon has a higher reputation. Besides that, their
parent company is an award-winning hairstyling company, which is A Cut Above.
Moreover, they also provide more than just hairstyling services, which are make-up and
manicure & pedicure services. The location of ReStyle Hair Salon is more strategic than
Royce Hair Salon as it is located in the commercial building of a university. The students
there, who some eventually become their customers are the target market of their business.
Therefore, ReStyle Hair Salon is definitely more successful that Royce Hair Salon.
YouTube Link For This Section:
https://www.youtube.com/watch?v=vtNmzONn2PY&feature=youtu.be

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RECOMMENDATION
Based on the two business we have selected which was ROYCE HAIR SALON that are
located at Seremban and also RESTYLE HAIR SALON which is located in Klang Valley,
we have made a comparison between both of them, we can conclude that RESTYLE HAIR
SALON offers more services and also has a much more better reputation compared to
ROYCE HAIR SALON that are located in Seremban. Both business are in a perfectly
competitive market which also allows them to have the ability to improve and also expands
their business in different ways. Therefore, varieties of recommendation are shown below to
improve their business respectively.

ROYCE HAIR SALON, SEREMBAN

1. Spending money on Your Salon is highly recommended, be in the most decent
Location In Order To Charge High Fees from customers.
At the point when a customer encounters excellent services that is above standard,
they will then go out and rave about you to all their friends and buddies. New business as an
issue of these referrals comes effortlessly & smoothly. It is about situating yourself as the
transcendent master in your class. When you have this position, it is currently conceivable to
charge an expense more suitable to your expertise and capacity. How frequently have you
put all your vitality into making an amazing hairdo for a customer, just to feel discharge
subsequently on the grounds that the charge rendered is no place close to the effort you put
in, or they simply didn't admire the consideration you have put into this most recent
creation? It doesn't need to be that way. Therefore, a good location is very important as
ROYCE HAIR SALON is located in a quiet area of shop lots in seremban. Not many people
would notice about this salon except for regular customers. Customers normally would not
choose to go to quiet places as they often stereotype it as a dangerous and unsafe area. I
would suggest the salon to be located in a shopping mall or even along the main road by a
developed area so that customers would feel comfortable and safe to walk in.

11

2. Add-On Services
As ROYCE HAIR SALON offers a very limited services, i would recommend that
salon to add more services so that customers can treat that particular salon as a one-stop
beauty centre. Expand your incomes consistently by offering add-ons" benefits for
customers who are as of now accepting treatment. Survey your customers' lifestyle habits,
preferences, interests and what sort of extra services that they are keen with. Your extra
services may be a hot oil treatment or nail trim. This can be added to your greetings upon
your customer walking in. "would you want to try our hot oil treatment? We have a limited
time special today." For male customers, it might be "Would you like our express nose-hair
trimming alongside with your improved hairdo today?" This is an ease, exceptional yield
method. You can assign the add-on" services at numerous focuses during the customer
servicing process. It can be offered upon by making bookings and setting up appointments,
the update call or upon entry. You can test and measure at which purpose of offer you get the
most elevated reaction rate. An approach to approach a customer with an add-on services
may begin with looking for permission by inquiring as to whether "I recommend an item or
services for you today There will be a chance where customers may reject or accepts that
offer. If the customers denied, don't think about it literally! You have not been hostile or hard
offer. You are satisfying your obligation to offer routes for your customer to look their best.
The customer presumably needs some new thoughts and item recommendations from a
professional. In the event that you permit yourself to concentrate on the individuals who say
yes and not be put off or feel dismisses by the individuals who say no, you will begin to see
your incomes increment altogether about over time.

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RESTYLE HAIR SALON, KLANG VALLEY

1. Rebooking System
Since RESTYLE HAIR SALON offers numerous services that are not just hairdo
services that are done professionally that requires the usage of products when a treatment in
on going. The treatment and products that salon offer are services that require your customer
to utilize you once more, and once more. On the off chance that your product is of top notch
and you convey your services with good care and also customer fulfillment, there would be
definitely a reason for your customer to come back to you inconclusively and until the end
of time! To influence this, rebooking system are required to upsell different services and to
expand the recurrence of your customers' yearly number of visits. the lifetime estimation of
your customers can be estimated focused around what their yearly spending is with the
business. Knowing this regular customer information will empower you to be more key in
your rebooking and upselling exercises. On the off chance that you realize that Client A
visits you 4 times each year for highlights and 8 times each year for an improved hairdo, you
can expand the hair styling recurrence by proposing a molding treatment or book them ahead
of time for the following highlight treatment after a hair styling by offering a Gift, special
promotional items or just getting the bookings book out to help them make their next
booking. Before paying bills at the counter, help them to remember their upcoming treatment
appointment . "It's been six weeks since your last coloring treatment, might you want to book
inside the following month to secure a spot?" or "We are putting forth a complimentary nail
trim with our hair stylings amid the month of February. Might you want to make an
appointment now?" By booking clients in advance, you will be much more strategically
positioned when planning your calendar, maximising operating hours and your stylists paid
hours.

13

2. FAME up VIA social network

As FAME is a very important key to keep the business running. A business without
anyone knowing would actually reflects how poor the marketing strategy of the business is.
In our modern era, internet plays a very big role in our daily lives. therefore, marketing
and also advertising can be share to everyone via social networks such as twitter, opening
and facebook account for the salon and also by sharing on a blog. Nothing works better in
internet advertising over turning into an asset of focused on informations. As an hairstylish,
it is presumably effortlessly consider products you can survey, or intense braids that you can
compose lessons on. They don't have to be long - 500 words will do fine and well enough.
These articles can help your perceivability in web crawlers such as Google and Yahoo and
provide for you a ton more to impart and discuss on online networking. other than that, the
salon should also post nice pictures of their work done often. Choose your best and most
diverse photos and make sure to post them on your website. Even more importantly, post
them on your Twitter and Facebook Wall. People may not visit your website frequently, but
they monitor their Twitter and Facebook feeds on a daily and hourly basis. By taking nice
pictures, make sure the pictures are professionally taken. Partnership with local
photographers might benefits a lot in terms of physical appearance of your advertising
through the social media. Photographers are always in need of makeup artists and stylists for
their shoots. In addition to often being paid for their on-site services, stylists get credit along
with the photographer for any published photographs. Hairstylist should also always take
clients photos consistently. for example, before and after photos of their make over.Keep a
camera conveniently and take photographs of your cuts and styles frequently. Since a great
many people have a support of self-assurance after a hair styling or style, numerous will be
glad enough to posture for a couple of shots.

14

APPENDICES
Appendix 1: Interview Questions
1. When did you started up this hair salon?
2. Who are the founder(s) of this hair salon?
3. What was your motive in starting up this hair salon?
4. How many customers walk in daily for a hairstyling service?
5. Except selling your hairstyling services, do you provide any other services or sell any hair
care products?
6. What is the age range of your customers?
7. Where do your customers usually come from?
8. How many branches of his hair salon do you have?
9. How many competitors do you have around this area?
10. What are your strategies in competing against your competitors?
11. Being the only hairstylist here with another employee, is it hard to manage the hair salon
with just two of you?
12. Have you ever thought of hiring any extra employees to work for you?
13. Do you require any other essential skills to start up a hair salon business besides
hairstyling skills? If yes, what are they?

15

Appendix 2: Interview Notes

Date: 18th November 2014
Time: 12:30pm
Location: Royce Hair Salon, Seremban
Interviewers: Tan Zhao Ming and Hooi Zhao Hong
Interviewee: Royce, owner of Royce Hair Salon.
1. When did you started up this hair salon?
This hair salon was established in 2012.
2. Who are the founder(s) of this hair salon?
I am the only founder of this hair salon.
3. What was your motive in starting his hair salon?
It has always been my dream to become a professional hairstylist and start my own hair
salon one day.
4. How many customers walk in daily for a hairstyling service?
About 8 to 20 customers walk in daily.
5. Except selling your hairstyling services, do you provide any other services or sell any
hair care products?
Yes, we do sell hair care products such as hair shampoos and conditioners.
6. What is the age range of your customers?
Between age 20 to 40.
7. How many branches of his hair salon do you have?
So far this is the only branch we have.
8. Where do your customers usually come from?
My customers come from Seremban and Kuala Lumpur, but majority of them are from
Seremban.
9. How many competitors do you have around this area?

16

There are around ten more hair salons around this area.
10. What are your strategies in competing against your competitors?
I believe in my individual hairstyling skill and I believe that if I provide an excellent service
to every customer, they would come back next time for another hairstyling service from me.
11. Being the only hairstylist here with another employee, is it hard to manage the hair
salon with just two of you?
It is not that hard because I only accept appointment from customers to provide my service
as I can arrange my schedule.
12. Have you ever thought of hiring any extra employees to work for you?
Yes I am trying to hire more employees but it is very difficult to look for an experienced and
professional hairstylist around this area.
13. Do you require any other essential skills to start up a hair salon business besides
hairstyling skills? If yes, what are they?
Yes of course. Besides just hairstyling skills, you must also know how to promote your hair
salon via social networking websites to get to know more people and to attract more
customers.
Appendix 3: Photos

Exterior look of Royce Hair Salon in

Oakland Commercial Centre, Seremban.

17


Interior look of Royce Hair Salon.

Facebook page of Royce Hair Salon.

Link here:
https://www.facebook.com/RoyceHairS
alon

ReStyle Hair Salon located in Syopz Mall,

Klang Valley.

18

Winnie Loo, founder of A Cut Above Group and ReStyle Hair Salon.

REFERENCES
1. Personal interview with Mr. Royce, owner of Royce Hair Salon in Seremban. Interviewed
on 18th November 2014.
2. Personal interview with Shermei, manager of ReStyle Hair Salon @ Syopz Mall, Klang
Valley. Interviewed on 26th November 2014.
3. A Cut Above Group official website, http://acutabove.com.my/salon_restyle.html,
accessed on 28th November 2014.
4. Weng Wai (July 2014) Review: Spazio Hair Studio, SS15 Subang Jaya. Retrieved from
MYMenLifestyle: http://www.mymenlifestyle.com/fashion/review-spazio-hair-studio-ss15/.
Accessed on 29th November 2014.
5. Boo, Angeline (July 2013) English 2 Final Assignment: Business Analysis. Retrieved from
Angeline Boo E-Portfolio: http://angelineboo.wix.com/fnbe-july-2013 - !about1/c100b.
Accessed on 29th November 2014.

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